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QUESTION 1 Ahngram Corp. has 1000 carton of oranges that cost $48 per carton in direct costs and $26.00 per carton in indirect costs and

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QUESTION 1 Ahngram Corp. has 1000 carton of oranges that cost $48 per carton in direct costs and $26.00 per carton in indirect costs and sold for $68 per carton. The oranges can be processed further into orange juice at an additional cost of $22 00 and sold at a price of $122. The incremental income (loss) from processing the oranges into orange juice would be: O ($97,000) O $89,000 O $100,000 O $97,000 O $90,000. QUESTION 2 Bluebird Mig. has received a special one-time order for 15,000 bird feeders at $3.50 per unit. Bluebird currently produces and sells 75,000 units at $7:50 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $4.25 per unit, which includes $2.50 variable cost and $1.75 fixed cost If Bluebird accepts this additional business, the effect on net income will be: O $15,000 increase. O $11,250 decrease O $37,500 increase $37,500 decrease O $52,500 increase

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